$90M Amazon Buy is Latest in Industrial REIT’s Local Spree

By Camelia Bulea, Associate Editor

Denver-based Industrial Income Trust Inc. acquired a 1.26-million-square-foot Amazon distribution facility in a $90.3 million deal, the Phoenix Business Journal reported. At $71.25 per square foot, the price is the highest ever commanded by a spec industrial building in the metropolitan Phoenix market, Cushman & Wakefield Inc. told the Business Journal.

One of four Amazon facilities in the Valley, the warehouse at 75^th Ave. and Van Buren St. in southwest Phoenix is fully leased by the online retailer for 10 years. Falcon 7X Inc., a venture formed by Buzz Oates Enterprises Arizona in Phoenix, was the seller. Cushman & Wakefield’s Bo Mills and Mark Detmer arranged the cash transaction.

Counting the most recent purchase, Industrial Income Trust’s local investment totals $237 million and 3.15 million square feet. In the second quarter, the trust made two other major deals in the area,  Business Real Estate Weekly of Arizona reported.

• In May, Industrial Income Trust paid $131.6 million to purchase 1.6 million square feet of warehouse space in two distribution buildings within the Riverside Industrial Center in Phoenix, making its first Valley investment. KTR Capital Partners LP was the seller.
• In June, the company purchased 302,640-square-foot Tolleson Distribution Center at 9704 W Roosevelt St. in Tolleson for $15.2 million. Prologis was the seller.

Photo courtesy of CoStar